Harley-Davidson Stops Developing Gas-Powered Motorcycles More than “Regulatory Compliance Problem”May 21, 2022
Harley-Davidson explained Thursday it would briefly halt output of all gasoline-driven motorcycles for two months “out of an abundance of caution,” thanks to an unspecified difficulty with a supplier’s ingredient and a “regulatory compliance subject.” Output of electric LiveWire motorcycles is not affected by today’s selection.
Harley’s assertion, posted on Thursday to the company’s site, is shorter and sweet. This does not show up to be a supply chain problem, like what we have viewed impacting automakers for months now, but relatively a difficulty with a piece of gear that Harley purchases from a third-social gathering supplier. Harley’s statement in its entirety:
Yesterday, Harley-Davidson, Inc. (“Harley-Davidson”) (NYSE:HOG) took the final decision to suspend all car or truck assembly and shipments (excluding LiveWire) for a two-week period. This choice, taken out of an abundance of caution, is primarily based on information and facts furnished by a third-bash provider to Harley-Davidson late on Tuesday (5/17) concerning a regulatory compliance subject relating to the supplier’s ingredient component.
The observe that LiveWire electric powered styles are excluded hints at a critical trouble specific to Harley’s gasoline-powered bikes. The mention of a “regulatory compliance matter” would seem to position towards a problem with an emissions-connected unit. When achieved by Jalopnik, Harley-Davidon did not provide any further more comment on the subject.
Bike gross sales shot up in the pandemic, to Harley’s profit: The company’s shipments rose 30 percent in 2021 as opposed to the yr prior, while shipments ended up flat in the 1st quarter of 2022 as Harley has struggled to deal with other supply-chain issues.
It also will come at a quite unwelcome time: Harley-Davidson is identified to rebrand itself to come to be far more appealing to younger customers. The corporation seemed to eventually be developing momentum towards that goal, even demonstrating bigger income previously this calendar year.
Wall Avenue wasn’t impressed by today’s news out of H-D. Harley’s stock was down 9 per cent for the working day as of this writing.